Segment Information

3 Months Ended

Dec. 31, 2017

Note 21. Segment information

Woodward serves the aerospace and industrial markets through its two reportable segments - Aerospace and Industrial. When appropriate, Woodward’s reportable segments are aggregations of Woodward’s operating segments. Woodward uses operating segment information internally to manage its business, including the assessment of operating segment performance and decisions for the allocation of resources between operating segments.

The accounting policies of the reportable segments are the same as those of the Company. Woodward evaluates segment profit or loss based on internal performance measures for each segment in a given period. In connection with that assessment, Woodward generally excludes matters such as certain charges for restructuring costs, interest income and expense, certain gains and losses from asset dispositions, or other non-recurring and/or non-operationally related expenses.

A summary of consolidated net sales and earnings by segment follows:



	Three-Months Ended
	December 31,
	2017		2016
Segment external net sales:
Aerospace	$	305,905	$	266,680
Industrial		164,243		176,214
Total consolidated net sales	$	470,148	$	442,894
Segment earnings:
Aerospace	$	43,553	$	46,877
Industrial		19,344		17,998
Nonsegment expenses		(19,023)		(11,381)
Interest expense, net		(6,387)		(6,435)
Consolidated earnings before income taxes	$	37,487	$	47,059

Segment assets consist of accounts receivable, inventories, property, plant, and equipment, net, goodwill, and other intangibles, net. A summary of consolidated total assets by segment follows:



	December 31, 2017		September 30, 2017
Segment assets:
Aerospace	$	1,673,675	$	1,722,789
Industrial		695,167		695,264
Unallocated corporate property, plant and equipment, net		113,790		104,755
Other unallocated assets		242,542		234,301
Consolidated total assets	$	2,725,174	$	2,757,109